The State of Illinois requires the City of Batavia to collect an Electric Excise Tax. The tax is the lower of 5% of total electric charges (before taxes or franchise fees) or .0032 cents per kilowatt-hour. The City of Batavia collects the tax and remits it to the State of Illinois Department of Revenue each month.
The City of Batavia charges a 4% Franchise Fee on the total electric charges. This franchise fee is collected and paid to the City of Batavia's general operations fund. This franchise fee supports general operations of the City of Batavia and allows the City of Batavia to levy lower property taxes. The franchise fee is a local tax and would be charged to electric customers if the utility were an investor owned utility or public utility.